Elumelu confirms buying extra N6bn shares to tighten control on Transcorp, Otedola unusually mute

Tony Elumelu has confirmed that he bought another 1.99 billion shares in Transnational Corporation (Transcorp), while Otedola stayed silent amid exit reports.

Ripples Nigeria learnt that Elumelu spent over N6 billion to acquire the 1.99 billion shares. The acquisition will tighten his control over Transcorp and prevent a takeover brewing in the company after Otedola’s share acquisition.

In a corporate document shared with shareholders and the capital market dated April 28, and obtained on Saturday, Transcorp said Elumelu bought the 1.99 billion shares through HH Capital Limited. The details of the acquisition were as of April 28 according to the firm.

HH Capital Limited is an investment firm owned by Elumelu. It now holds 11.99 billion shares on behalf of Elumelu, having bought 9.69 billion shares between April 19 and 25. Before then, HH Capital held just over 200 million shares.

Elumelu also owns 273.54 million indirect shares held through Heirs Holdings Limited and 273.10 million direct shares. This means he owns 12.53 billion shares or N35.23 billion investment in Transcorp.

Read also:Otedola ends Transcorp leadership drama, as Elumelu pays him over N30bn to exit

Elumelu now has a 30.8 per cent controlling stake in Transcorp Plc, making the investment banker the highest shareholder or largest majority investor in the diversified investment company.

Otedola stays unusually silent amid Transcorp exit reports

Meanwhile, a day after reports emerged that Femi Otedola sold his shares in Transcorp to Tony Elumelu, he has been unusually silent.

Three days before the reports circulated on Friday, Otedola had been reacting via his Twitter account to the acquisition of Transcorp shares, which he bought on April 19.

Ripples Nigeria previously reported that Otedola bought 2.45 billion shares in Transcorp. This made him own a 5.52 per cent stake in the firm.

On Monday, Otedola wrote: “Following this acquisition I look forward to working with the board and management of Transcorp to realise the amazing future potential of the corporation.”

Two days later, Otedola confirmed that he had acquired additional shares, stating: “Stakes are going higher.” He shared a clip alongside the tweet.

Later, Transcorp confirmed on Thursday that Otedola acquired additional 228.38 million shares on April 20.

On the same day, after Elumelu publicly stated during an interview that he welcomed Otedola’s investment in Transcorp, Otedola wrote on Twitter: “Well done @tonyoelumelu, my friend and astute investor. The admiration and respect is mutual. One love bro.”

However, since reports emerged that Elumelu acquired the shares he bought at the cost of about N32 billion, Otedola hasn’t responded or tweeted to confirm as he has been doing for the past three days.

Transcorp didn’t respond to Ripples Nigeria’s enquiry regarding Otedola’s share transfer to Elumelu.

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